“Game-Changer Alert: Tata Technologies IPO’s Surprising Reservation News Shakes Up Market!”

Tata Technologies, the Tata Group entity preparing for an IPO, submitted an addendum to its draft red herring prospectus (DRHP) to SEBI on Tuesday. In the updated information provided to the market regulator, Tata Technologies has announced reservations for Tata Motors shareholders, its parent company, and eligible company employees.

The revised offer now includes a reservation of up to 10 percent of the post-offer paid-up equity share capital of the company for eligible Tata Motors shareholders. Additionally, eligible company employees will have a reservation of up to 0.50 percent of the post-offer paid-up equity share capital, as stated in the addendum.

However, the company did not specify or confirm whether there will be any discounts offered to Tata Motors shareholders and/or eligible company employees. Tata Technologies has received approval from the capital market regulator, SEBI, to initiate its initial stake sale, and the company is expected to list in the current quarter.

Tata Technologies is a global engineering services firm that provides product development and digital solutions to global original equipment manufacturers. It is one of the most highly anticipated IPOs in the primary market and marks the Tata Group’s first offering in approximately 17 years since Tata Consultancy Services.

The initial public offering of Tata Technologies comprises an offer for the sale of up to 95,708,984 equity shares, with Tata Motors selling up to 81,133,706 equity shares, Alpha TC Holdings disposing of up to 9,716,853 equity shares, and Tata Capital Growth Fund I releasing up to 4,858,425 equity shares of the company.

Of the net offer, 50 percent of the shares in the Tata Technologies IPO will be reserved for qualified institutional bidders, while non-institutional investors (NIIs) will be allocated no more than 15 percent of the shares. Retail investors will receive approximately 35 percent of the offering.

JM Financial, Citigroup Global Markets India, and BofA Securities India are serving as the book running lead managers for this issue, with Link Intime India appointed as the registrar. Shares of Tata Technologies will be listed on both the BSE and NSE.

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